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RBA
Commentary for September 2019 The
official cash rate sits at 1.00% as: ·Inflation sits around 1.6%; ·The Australian dollar fell to 0.67c US;
and ·Unemployment stays at 5.2%. The word ‘recession’
strikes fear into the hearts of anyone who hears it mentioned. So, when
economists start discussing if the rebound in housing prices is going to be
short-lived due to a looming recession, naturally the ears of homeowners within
hearing distance prick-up. Now while the word
recession sounds formidable, the fact that housing prices are starting to
recover from a slump, and that the Reserve Bank of Australia has once again
left rates on hold are both favourable. Why? Well, let’s take an
in-depth look at what’s occurred recently, and in the past, so we can put your
mind at ease about recession and it’s impact on housing prices. Recession Housing Price Discussions Economists are talking about a recession. Now for those of you who don’t know what a recession is, it
is defined as two fiscal quarters (s…

The official cash rate sits at 1.00% as: ·Inflation hovers around 1.6%; ·The Australian dollar fell to 0.68c US; and ·Unemployment sits around 5.2%.

CoreLogic announced on
August 1, 2019, that national housing prices across Australia had risen, albeit
marginally, prompting the Reserve Bank of Australia (RBA) to leave rates on
hold. Despite this move by
the RBA, homeowners are welcoming the news of national home price growth as
this is the first time in two years that national dwelling prices have shown positive
signs. This change, however, also has many owner-occupiers and investors
questioning whether or not this is an indication that the market is about to
turn for the better. In light of the
announcement by CoreLogic, the Reserve have left the official cash rate on hold
for August. But economists are suggesting that if inflation continues to stall,and
doesn’t meet RBA targets, then it’s likely that rates will get cut again. Some
economists are even specula…